The rand was little changed from its early morning levels by noon on Wednesday in what a trader said was a quiet session which saw the currency strengthen on the back of a weakening dollar.

At 12.00am the rand was bid at 7.7536 to the dollar from 7.8079 at its previous close. It was bid at 11.4252 to the euro from its previous close of 11.4973 and was at 12.8180 against sterling from 12.8290.

The euro was bid at $1.4755 from $1.4716 overnight.

"We have been quiet. Since last night we saw the dollar has been weakening and that is the reason for the strengthening rand," a local trader said.

"I think the day will be quiet. Any spikes towards the 7.78-7.80 level, we will see selling into that. For now there is support around the 7.64 level.

"We will track the dollar against the majors," he said.

Said another trader: "We haven't seen much since this morning. That seems to be the trend lately, all the moves are happening in New York and early Asia. Markets are thin at that time.

"Also, equity markets seem to be driving the bus at the moment. Until equities decide to settle we will stay around these levels of 7.65-7.95.

"I don't think we will get much below 7.70 and on the topside we are looking at about 7.82-7.83. I think we are still vulnerable on the topside," he said.

RMB analysts John Cairns and Nema Ramkhelawan earlier said that yesterday was better for the rand, US dollar/rand dropping off 8.00 to settle around 7.80.

"This comes despite some decent USD strength, as evidenced also in the EUR/ZAR pullback to 11.50. Gold gains to new highs probably helped, so too the news that Warren Buffett was betting big on the outlook of the US economy. Most of all probably is the fact that we were looking a bit stretched. No longer, with the rand gains we now are more or less in line with our compatriot currencies again," the analysts said.

"Global risk appetite remains the main driver but for the next two days focus shifts to monetary policy. While interest rate hikes might be as much as a year away, the question is already being asked: who will hike first, the Fed or the ECB? Today we should get hints from the former, tomorrow the latter. The exceptionally easy monetary policy of the last year has, of course, dragged the US dollar down," RMB said.

"US dollar/rand 7.65 - 8.00 is the range with trade today centred on 7.80 and mild bias for further downside.

"Apart from the Fed statement late this evening, watch the global service purchasing managers indices, notably the non-manufacturing ISM figure from the US, as well as US jobs figures," Cairns and Ramkhelawan concluded.

Bonds better bid

Bonds remained better bid by noon on Wednesday on the strong rand, but had not picked up enough momentum to make a run on the 8.400 percent level. A local dealer said some offshore buying had helped provide an underpin.

By 12:20, the short-term government R154 bond was bid at 7.180 percent from a previous close of 7.150 percent. The medium-term R157 was at 8.435 percent from 8.470 percent, while the long-term R186 was at 9.030 percent from 9.060 percent.

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